Income tax refunds can provide much needed financial assistance to survivors of domestic violence. April 15th is the due date for filing income taxes with the IRS. Advocates and survivors can find helpful information on filing taxes on TCFV’s website.

One Stop Site:
The Texas Taxpayer Assistance Project has a variety of tax resource materials in English and Spanish. To view this information click here.

Family Violence Survivors:
Survivors should note that they may be eligible for relief from the Internal Revenue Service (IRS) for the previous debt or tax burden of their abusers, known as Innocent Spouse Relief. See “Tax Information for Survivors of Domestic Abuse,” a brochure of basic information for survivors by the IRS. Additional information about Innocent Spouse Relief can also be found on the IRS website.

Immigrants:
Immigrants may discover additional benefits to filing taxes including proving presence in the US, evidencing relationships to spouses and/or children and demonstrating compliance with the law. Advocates and immigrants should review the “Special Issues for Immigrants Filing Tax Returns” flyer by the National Employment Law Project on which types of refunds are available to immigrants holding various types of status, as well as unique processes and forms for immigrant workers. The brochure also addresses applying for an Individual Taxpayer Identification Number (ITIN).

Earned Income Tax Credit (EITC) and Child Tax Credit (CTC): Every year Texas families leave nearly $1 billion in potential tax credits, in the hands of the federal government due to lack of knowledge about the Earned Income Tax Credit (EITC). Survivors should consider filing for the EITC or CTC if eligible. Single or married people who worked full-time or part-time at some point in 2007 can qualify for the EITC, depending on their income. The CTC is worth up to $1000 for each qualifying child under age 17 on the worker’s tax return. Survivors can use the website, www.icanefile.org, to automatically calculate and file for all potential tax credits, including the EITC and the CTC. More information about qualifying for the EITC can be found on the IRS website. Information about the CTC can also be found on the IRS website.

Economic Stimulus Package:
Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax return. IRS will take care of the rest. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17.

Public Benefits Recipients:
Persons eligible for an Earned Income Tax Credit (EITC) who have received public benefits should know that an EITC is NOT counted as income in most public benefit programs including: TANF, SSI, Food Stamps, Medicaid, CHIP, and federally assisted housing. An Earned Income Tax Credit MAY be counted in various ways as a resource for these programs, unless it is spent immediately or placed in an exempt savings account such as an IDA. See “How Resources are Treated by Federal Public Benefits Programs in Texas chart” by the Center for Public Policy Priorities.

Telephone Excise Tax Refund:
Long distance telephone customers between 2/28/03 and 08/01/06 may be eligible for this one time refund opportunity. More information can be found on the IRS website.

Refund Anticipation Loans:
First and foremost, survivors should avoid commercial tax assistance that advertise “Fast Cash Refunds,” “Express Money,” or “Instant Refunds” also known as Refund Anticipation Loans (RAL’s). Share “Don’t Pay to Borrow your Own Money” brochures by the National Consumer Law Center, Inc., warning of the risks and costs to these services. (en español)

Free Assistance Available:

  • ACORN, the Association of Community Organizations for Reform Now, offers free tax help within communities to low- to moderate-income persons. Click here to locate the closest ACORN tax prep site.
  • A new website sponsored by the Texas Legal Services Center, www.icanefile.org, will automatically calculate and file for all potential tax credits, including the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC), and others. There is no charge to use the website. For a list of forms you will need to have on hand to file click here. For a list of forms that the program, I-CAN™ E-FILE will generate during the interview process click here.
  • Volunteer Income Tax Assistance (VITA) programs offer free assistance in preparing tax returns to those who earn under $40,000. For information on the nearest VITA call (800) 829-1040.
  • The IRS awards grants nationally to Low Income Tax Payer Clinics to provide tax assistance. Low Income Taxpayer Clinics (LITC) offer free assistance to lower income taxpayers, earning less than $42,625 for a family of four, regarding disputes with the IRS. To review the eligibility guidelines for these clinics and locate clinics across Texas, click here.
  • Advocates and survivors may also wish to call United Way’s First Call for Help at 211 or click here for additional tax assistance resources in your communities.
  • If you are located in Austin, Texas, Community Tax Centers provides assistance to low income individuals to help file their taxes as well as tax preparation services for low income individuals who are the owners of a small business.